Fairtax familiar around here?

so are the people here familiar with the fairtax act? look up fairtax.org and discuss.

No it will have the opposite effect, people will have more to spend and would not mind spending it and being taxed on things they actually want.

I'm afraid I still don't get it. Here are three issues I'd like someone to explain:
* The mathematics is commutative
* However, you're also eliminating the tax brackets
* This results in middle and lower classes bearing more of the tax burden

I explain the above reasoning as thus:
Say you earn $30,000 and are taxed 25%. So you receive $22,500 to spend however you want. Now let's try the other approach instead, and you're only taxed 25% when you buy something: now you receive the lump $30,000, but still can only buy $22,500 worth of goods. That's identical; it's commutative.

...except that you're apparently eliminating the tax brackets. This only benefits the rich, since they can hoard their money and invest it. The mathamatics follows below.

This is detrimental to the (shrinking) middle and (growing) poor classes, who don't have as much luxury. I say this for the following reason: if the government currently taxes the rich at a higher rate, and you remove the tax brackets, to earn the same tax revenue the overall tax rate will need to be higher. You cannot make something from nothing, so if the rich do not pay it, the poorer classes will.

Why do the rich pay less? Since they have more money, a lower percentage needs to be spent on essential (and even luxury) items. This leaves them with a larger percentage of potential excess income they can invest. The effect of investing is a growth in the money, which reduces the apparent tax rate.

Imagine:
* I have $2,000,000 dollars a year.
* I need $100,000 to live nicely.
* This leaves me with $1,900,000 dollars to use.
* If I spend it all on goods right now, I can acquire $1,900,000 * (1 - 25% tax) = $1,425,000 worth of goods
* If I invest instead, and it grows by 25% over a number of years, I now have $2,375,000 lying around, just for that year.
* If I now spend that $2,375,000, I can buy $1,781,250 worth of goods. I'm effectively taxed at 6.25%.

Someone will no doubt quickly point out that the government still gets more taxes. There's just one problem: the increased income generated from investment into stocks comes from stocks rising. Why do they rise? Because consumers, which consist of the majority (poor and middle classes) are buying. So it appears the system is closed, and the government is making a net loss.

Final conclusion: it's all in your head, unless you're stinking rich.

So, I don't get it. What did I miss?